Related/Interrelated Claims or Wrongful Acts

The U.S. District Court for the Southern District of California, applying California law, held that two lawsuits against a real estate broker involving his dual representation of buyers and sellers in the same real estate transaction arose from the same wrongful act, such that the second suit was deemed a claim first made at the time the first suit was filed—prior to the inception of the broker’s claims-made errors and omissions policy.  Martin v. QBE Ins. Corp., 2019 WL 2009874 (S.D. Cal. May 7, 2019).

Continue Reading Two Lawsuits Based on Real Estate Broker’s Dual Representation of Buyers and Sellers in Same Transaction Arise from Same Wrongful Act

The United States District Court for the Eastern District of Pennsylvania, applying Pennsylvania law, has held that a telephone marketing scam and an internet false advertising scam were not interrelated wrongful acts precluding coverage because the conduct behind the alleged wrongful acts was different. Connect America Holdings, LLC v. Arch Ins. Co., 2016 WL 1254073 (E.D. Pa. Mar. 31, 2016).
Continue Reading Claim for Trademark-Infringing Telephone Scam Not Interrelated with Claim for Internet Scam

A California federal court has held that a professional liability policy does not afford coverage for claims against an insured individual, who was serving as executor of his father’s estate, by his stepmother because those claims related to earlier claims by the stepmother before the policy period. Cove Partners, LLC v. XL Specialty Ins. Co., 2016 WL 461918 (C.D. Cal. Feb. 2, 2016). Wiley Rein represented the insurer. The court dismissed claims of breach of contract, bad faith, fraud, and reformation with prejudice.
Continue Reading Court Dismisses Coverage Action Where Claims Were Made Before Policy Period and Barred by Prior and Pending Litigation Exclusion